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Agricultural productivity and structural transformation. Evidence from Brazil
Bustos, Paula; Caprettini, Bruno; Ponticelli, Jacopo
Universitat Pompeu Fabra. Departament d'Economia i Empresa
We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agriculturalproductivity on industrial development depends on the factor bias of technical change. We testthe predictions of the model by studying the introduction of genetically engineered soybeanseeds in Brazil, which had heterogeneous effects on agricultural productivity across areas withdifferent soil and weather characteristics. We find that technical change in soy production wasstrongly labor saving and lead to industrial growth, as predicted by the model.
Macroeconomics and International Economics
agricultural productivity
structural transformation
industrial development
labor saving technical change
genetically engineered soy.
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